The European Commission looks set to demand that Electricite de France divests its network operation in what is the latest move by Brussels to force France to properly engage in the EU's liberalization agenda.

The Dow Jones reports that French newspaper Journal du Dimanche has predicted that Neelie Kroes, the European competition commissioner, will announce on January 10, 2007 that Electricite de France must sell off its network subsidiary RTE in a bid to improve competition in France and the wider European region.

The demand will come as part of the conclusion to an EU review on the failings of the European energy market, due to be published on January 10, 2007. The review is reportedly expected to suggest that electricity production and distribution should be separated.